I am excited to draw your attention to the recently released General Welfare guidance. You may have received an e-mail from Treasury about it, but we have also posted a web article for your review. Please be sure to check it out.

We’d like to thank the volunteers who have participated in the Volunteer Income Tax Assistance (VITA) program. You provide a tremendous service to tribal members, offering your help at no charge to those who are in need.

Finally, we are working on hosting two virtual events. Once we have confirmed the dates and times, we will share that information with you. The topics will be Year End Reconciliation and General Welfare.

As always, if you have questions, comments or concerns, please don’t hesitate to contact your ITG Specialist or send us an e-mail.

Sincerely,

Christie Jacobs
Indian Tribal Governments Director

Tribes: have you filed your Form 11-C?

Tribes selling pull-tabs were required to file Form 11-C by July 1 for the period July 1, 2014 through June 30, 2015. Tribal governments and agents (persons who accept taxable wagers on behalf of the tribe) should complete this form as soon as possible. Read the April 2014 edition of the ITG News for more information.

How to avoid an “averaged” failure-to-deposit penalty

When preparing Form 941, make sure you correctly complete page two, Part 2, line 14 by declaring your deposit schedule and reporting your tax liability.

The IRS may assess an “averaged” failure-to-deposit (FTD) penalty of 2% to 10% if you omit or do not properly complete this liability section of Form 941.

To protect the integrity of the Social Security number and prevent fraud, the Social Security Administration (SSA) will discontinue providing Social Security number printouts effective August 1, 2014. If you need proof of your Social Security number and you do not have your Social Security card, you will need to request a replacement Social Security card by completing the Application for a Social Security Card (Form SS-5) and providing the required documentation.

Also, effective October 1, 2014, Social Security will stop providing benefit verification letters in their offices. You will still be able to get an instant letter online with a personal my Social Security account or you may call 1-800-772-1213 (TTY 1-800-325-0778) to request a letter by mail.

How to get replacement Social Security cards

Your Social Security card is your legal proof of your Social Security number. If you need proof of your number, and you cannot find your card, you will need a replacement card. To get a replacement card, you must complete an Application for a Social Security Card (Form SS-5). Use this link and type “Form SS-5” in the search bar to find the form. You also will need documents proving your identity, age and citizenship or lawful immigration status.

In most cases, you can take, or mail, your completed application and original documents to any Social Security office. Use the Social Security locator to find the Social Security office or Social Security Card Center that serves your area. After processing, SSA will return your documents to you.

How to get benefit verification letters

If you need proof of your Social Security or Supplemental Security Income benefits, you can get a benefit verification letter online instantly through a my Social Security account. To create an account, click here. With my Social Security, you can easily view, print or save an official letter that includes proof of your:

Benefit amount and type; and

Medicare start date and withholding amount (if applicable); and Age.

If you are unable to go online, you can call the toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) to request having your letter mailed to you. You can also use your annual cost-of-living adjustment notice or SSA Form 1099 as proof of income from Social Security.

For more information, visit the Social Security website or call 1-800-772-1213 (TTY 1-800-325-0778), and ask for helpful publications, such as:

The ITG office in Anchorage held a phone forum on tax reporting responsibilities for tribes involved in the sale of pull tabs and raffle tickets. Eight individuals participated in this session on June 19. Topics included wagering games (pull tabs and raffles), and how to complete Forms 11-C and SS-4.

Western

National Indian Gaming Commission held a three day training opportunity March 11-13, 2014 for the gaming tribes of California, Nevada and surrounding regions, hosted by Morongo Casino Resort & Spa. The ITG National Program Manager, an ITG Specialist and a BSA Internal Revenue Agent presented two training sessions on Tip Compliance, Form 8027 (Employer’s Annual Information Return of Tip Income and Allocated Tips) and Title 31 Bank Secrecy Act (BSA) updates and current BSA issues. Representatives from various tribes and tribal entities attended the workshop.

The Centers for Medicare and Medicaid Services (CMS.org) hosted a two-day conference in Sacramento, CA that began June 3. A Northern California ITG Specialist presented on the Tax Impacts of Health Insurance Coverage for 2014. Topics included the Health Insurance Marketplace, the Premium Tax Credit and the Individual Shared Responsibility Provision. Representatives of tribes and health agencies attended. Participating agencies included CMS, Social Security Administration, Veterans Affairs, California Rural Indian Health Board, and Legal Services of Northern California, Inc.

Southwestern

ITG specialists from the Tucson office provided the following training sessions:

Basic Employment Tax Training workshop, Chinle Agency Chapters, Flagstaff, Arizona; and Village of Kykotsmovi Community Center, Second Mesa, Arizona. ITG presented these training sessions on December 5 and 6, 2013 to individuals representing chapters of the Navajo Nation for the Chinle Agency.

They also offered the same training on December 12, 2013 to individuals who represented Hopi Tribe Village Governments.

Volunteer Income Tax Assistance (VITA) training sessions. An ITG specialist assigned to the Tucson office offered VITA training sessions throughout the state of Arizona. ITG trained and certified 34 individuals as VITA volunteers.

Elected Officials workshop, Village of Kykotsmovi Elder/Youth Center, Kykotsmovi, Arizona. ITG presented this training session on March 20, 2014 to individuals who represented Hopi Tribe Village Governments and Hopi Tribal Entities. Topics included defining employees vs. independent contractors, computing payroll taxes, federal tax deposits, tax return due dates, avoiding penalties and completing various forms. During the workshop, the ITG specialist offered participants compliance reviews as well as assistance with different issues.

Gaming Issues and Reporting Workshop in Tucson, Arizona. Seventeen representatives from various tribes and tribal entities attended the workshop held on April 24, 2014. Topics included required tax reporting for gaming-related payments/activities, completing various IRS forms, tax deposit schedules and avoiding penalties and interest.

Title 31 Workshop in Tucson, Arizona. Sixteen representatives from various tribal entities attended the workshop held on April 24, 2014. Topics included historical background, suspicious activities and money laundering and recordkeeping requirements.

Mini-Advanced Employment Tax Workshop in Tucson, Arizona. ITG held the three-day workshop in May at the Federal Building. Representatives from various tribes and tribal entities attended. Topics included defining employees vs. independent contractors, payroll taxes, making federal tax deposits, due dates and avoiding penalties.

If you would like ITG to provide training in your area of the country, please contact your ITG specialist.

Arizona training opportunities

ITG will be offering the following workshop at the IRS office located at 300 West Congress Street, Conference Room B, Tucson, Arizona 85701. Please contact Tricia Miller or Michelle Risk for additional information or to register.

End of year reconciliation of Forms 945 to W-2G and 1099-Misc and the various 1042 Forms

TIP compliance – Form 8027, TRDA and GITCA Tip Agreements

Entity Compliance Checks

We will also be offering the opportunity for the attendees to meet on a confidential basis to discuss their entity’s reporting requirements, tax issues, notices or other tax related matters with an ITG Specialist. Please contact us prior to the training to schedule a time for the meeting.